Published by Jamie JemmesonForeign exchange rates may be affected by a 3.5 per cent decline in house prices last month in comparison to 12 months previously.According to research conducted by Hometrack, the average cost of a residential property in the UK tumbled by 0.1 per cent from the level seen in August.Commenting on the findings, Hometrack's director of research Richard Donnell said: "Events in the euro zone, together with pressures on the domestic economy and household incomes are clearly taking their toll on consumer confidence."He added that in the final part of 2011, prices are likely to continue to decline, as supply outweighs demand, causing houses to remain on the market for longer.Further changes in foreign currency exchange rates may be seen in the near future as the Bank of England's Monetary Policy Committee is set to discuss the possibility of quantitative easing when they meet this Thursday (October 6th).For more information on foreign exchange treasury services and risk management, visit our Corporate FX site